Global Markets Newsletter – November 2021

November was a corrective month mainly focused at the new Omikron variant of Coronavirus which was originated from Botswana in Africa. Inflationary concerns led to the same directions. Investors remain cautious but liquidity also remains ample with not many alternatives other than stocks as bonds do not offer returns and interest rates remain very low.

In the US, economic releases were mixed. Exports dropped at $207.6bln (from $214bln) while imports were marginally increased by half a billion dollars (from $288 to $288.5). Unemployment was announced at 4.6% (from 4.8%), inflation increased by 0.6% while on a yearly basis was up by 4.6%. In the energy sector, oil inventories, natural gas storage and gasoline inventories were reduced confirming concerns that winter may be cold and expensive regarding oil and gas. Retail sales increased by 16.3% (from 14.3%), industrial production also increased from 4.5% to 5.1% and in the real estate, market had a mixed image with building permits higher by 4%, new home sales were lower at 1.52mln but existing home sales marginally better at 6.34mln from 6.29mln.

In Europe, November was similar to the US with more volatility as concerns on coronavirus were higher than across the Atlantic. Unemployment was announced at 4.1% on a yearly basis, and 0.8% on a monthly basis, consumer confidence decreased at -6.8 from -4.8, industrial production was higher by 5.2% and GDP for the 3rd quarter was announced higher by 3.7% from 14.2% YoY.

In Greece, stock market moved on a correctional move following international markets. Volume remained low. In the bond market, new bonds of GEK Terna (energy) and Noval (real estate) are about to be issued with quite attractive yields.

The EUR/USD moved towards the 1.13 mark, and it is expected to continue to 1.10 as Powell characterised inflation as “not so temporary”.

We remain invested in US stocks with enough liquidity to wait for buying opportunities within corrective moves.

S&P-500 (1 year graph)
EuroStoxx-50 (1 year graph)
EUR/USD  (1 year graph)

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